Mar 22, 2007

Hancock Fabrics Closing 134 Stores

In a March 20, Press Release, Hancock Fabrics, Inc. (NYSE: HKF), announced the closings of 104 stores. This is addition to the 30 closings announced last month. Hancock has 403 units in 40 states.

In a March 21, Press Release:

Hancock Fabrics, Inc

"(NYSE: HKF), announced today it has filed a voluntary petition for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware. Its subsidiaries are also filing for the same relief. Hancock took this action so that it can use the reorganization process to improve the Company's operating performance, reduce its secured debt over time, close underperforming locations, and exit Chapter 11.”

From these releases it appears that the decision to close these stores has been a last minute one and there is no news of which locations or the timing was listed.

Various blogs have posted that going-out-of-business signs have already been posted on the 30 units announced in February with closing dates of around June 1, 2007. So far I have not been able to find any listing of which stores will be closed and which will be spared.